[Federal Register Volume 60, Number 185 (Monday, September 25, 1995)]
[Notices]
[Pages 49420-49421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23724]
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[[Page 49421]]
INTERSTATE COMMERCE COMMISSION
[Finance Docket No. 32750]
RailAmerica, Inc.--Control Exemption--Prairie Holding Corporation
and Dakota Rail, Inc.
RailAmerica, Inc. (RailAmerica), has filed a notice of exemption to
acquire control, through stock purchase, of Dakota Rail, Inc. (Dakota).
Dakota, a class III rail carrier, operates 43.66 miles of rail line
from Wayzata, MN, where it connects with the lines of the Burlington
Northern Railroad Company, to Hutchinson, MN.
RailAmerica, a noncarrier holding company, also controls Huron and
Eastern Railway Company, Inc. (HESR), the Saginaw Valley Railway
Company (SGVY), the South Central Tennessee Railroad Company (SCTR),
and the Delaware Valley Railway Company (DVR).1 Under the terms of
an agreement with Prairie Holding Corporation, a holding company,
RailAmerica will acquire all of the outstanding stock of Prairie and
all of the outstanding stock of Prairie's wholly owned subsidiary,
Dakota.2 After consummation, RailAmerica will be in control of
five nonconnecting class III rail carriers.3 The proposed control
transaction was scheduled for consummation on or after September 1,
1995.
\1\ Common control of these carriers was approved by the
Commission in: (1) John H. Marino, Eric D. Gerst, and Mariner
Corporation--Control Exemption--Saginaw Valley Railway Company,
Inc., Finance Docket No. 31196 (ICC served Apr. 23, 1991); (2)
RailAmerica, Inc.--Control Exemption--South Central Tennessee
Railroad Company, Finance Docket No. 32421 (ICC served Jan. 18,
1994); and (3) RailAmerica, Inc.--Continuance in Control Exemption--
Delaware Valley Railway Company, Inc., Finance Docket No. 32534 (ICC
served Aug. 31, 1994).
\2\ By decision served September 18, 1995, the Commission's
Secretary granted a motion for a protective order regarding the
stock purchase agreement.
\3\ HESR and SGVY connect with each other, but none of the rail
carriers connects with Dakota.
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RailAmerica indicates that: (1) The lines operated by Dakota do not
connect with any rail lines operated by any rail carrier within its
corporate family; (2) the involved transaction is not a part of a
series of anticipated transactions that would connect the railroads
with each other or any railroad within its corporate family; and (3)
the transaction does not involve a class I carrier. The transaction is
therefore exempt from the prior approval requirements of 49 U.S.C.
11343. See 49 CFR 1180.2(d)(2). The purpose of the transaction is to
preserve and enhance rail service on a light density rail line.
RailAmerica anticipates that it will be able to attract more rail
service to the line than is presently being provided by offering lower
costs, more frequent service, an improved car supply, and funded
capital improvements enabling Dakota to handle heavier shipments for
certain customers.
As a condition to the use of this exemption, any employees
adversely affected by the transaction will be protected by the
conditions set forth in New York Dock Ry.--Control--Brooklyn Eastern
Dist., 360 I.C.C. 60 (1979).4
\4\ Although RailAmerica states that no employees will be
adversely affected by the transaction, it recognizes that the
Commission may not relieve a carrier of labor protection obligations
for section 11343 transactions. 49 U.S.C. 11347.
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Petitions to revoke the exemption under 49 U.S.C. 10505(d) may be
filed at any time.5 The filing of a petition to revoke will not
stay the transaction. Pleadings must be filed with the Commission and
served on: Robert L. Calhoun, 1025 Connecticut Avenue, N.W., Suite
1000, Washington, DC 20036.
\5\ By letter filed September 5, 1995, the Minnesota Department
of Transportation (MNDOT) expresses opposition to the transaction
pending its review of whether the sale of Dakota complies with laws
and existing agreements to protect the public interest. The notice
satisfies the Commission's class exemption provisions under 49 CFR
1180.2(d) and will be published. MNDOT may file a petition to revoke
the exemption if it concludes, after its review of the transaction,
that grounds for revocation exist.
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Decided: September 19, 1995.
By the Commission, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 95-23724 Filed 9-22-95; 8:45 am]
BILLING CODE 7035-01-P
